SUMMER INTERNSHIP PROJECT REPORT

ON
“PERCEPTION AND FUTURE OF MUTUAL FUNDS”
Submitted for the partial fulfillment of the requirement for the award
of
BACHELOR OF BUSINESS ADMINISTRATION
For
Guru Gobind Singh Indraprastha University, Delhi

Submitted By: Submitted To:

Student Name:Ishvinder Singh Kalra Dr. Shaily Saxena
Roll No:35127901720 (project guide)
Batch: 2020-2023

TRINITY INSTITUTE OF INNOVATION IN PROFESSIONAL STUDIES

New Delhi-110059

1
CERTIFICATE OF INTERNSHIP

2
CERTIFICATE

This is to certify that ISHVINDER SINGH KALRA, Enrollment: 35127901720

have successfully completed the Summer Internship Report in BAJAJ CAPITAL
LIMITED. This file has been done in partial fulfillment for BACHELOR IN
BUSINESS ADMINISTRATION (BBA) course. The student has also made his
report to my entire satisfaction and as per requirements of the course.
The work has not been anywhere else for the award of degree. All source of
information has been duly mentioned.

SIGNATURE
SHAILY SAXENA
(FACULTY MEMBER)

3
 EXECUTIVE SUMMARY
I have completed my summer internship from Bajaj Capital Duration was around 2 months. The
summer internship gave me a great experience of Market and the corporate world. The project was
based on the comparative study & performance of mutual fund schemes in India.

Basically, I learnt about mutual funds in detail, A mutual fund is a pool of funds collected from
many investors for the purpose of investing in securities such as stocks, bonds, money
market instruments and similar assets through which the returns are gained and distributed to
Funds holders.

The mutual fund industry in India began in 1963 with the formation of the Unit Trust of India
(UTI) as an initiative of the Government of India and the Reserve Bank of India. Much later, in
1987, SBI Mutual Fund became the first non-UTI mutual fund in India.

The advantages of mutual fund are professional management, diversification, economies of scale
& liquidity whereas the disadvantages of mutual fund are high cost, managing a portfolio of funds
& dilution.

There are many types of mutual funds. You can classify funds based on structure (open ended &
close ended), nature(equity, debt, balanced) & investment objective(growth, income, money
market) Caps ( Large cap , medium cap , small cap )etc.

The risk return trade off indicates that if investor is willing to take higher risk then correspondingly,
he can expect higher returns & vice versa if he pertains to lower risk instruments, which would be
satisfied by lower returns. I also learnt that regular investing on schedule offers better returns & a
number of other advantages.

Systematic Investment Plans (SIPs) are not magic. Their superiority to lump sum investments is
not a matter of probability or even psychology but an absolute law. What this means is that most
of the time, under most circumstances, over a sufficiently long period of time, SIPs will do better.

4
SIPs mean investing with a fixed sum regularly regardless of the NAV or market level, investors
automatically buy more units when the markets are low. This results in a lower average price, and
the cost of Units of the products gets average out which turn out to the higher returns. If you invest
a large sum at one go, you could end up buying at a higher Cost or NAV. This would mean that
you have invested at a high NAV and that would reduce your gains if the market falls. An SIP is
a good way to invest at an average price over a period.
Secondly, SIPs are also a great psychological help while investing. When the market falls, they
sell and stop investing. When it rises, they invest more. It eliminates the mental load of deciding
when to invest and leads to better returns.

The primary data (Survey Method) was collected from a group of 100 respondents
The sample was collected through personal visits, formal & informal talks & through filling up the
questionnaire prepared.

Out of 100 respondents 40% people were little aware about mutual funds, 45% were well aware
& 15% people were there who just heard the name or rather are just aware of the fact of existence
of the word called mutual fund but doesn’t know anything else about mutual funds.

20% people who are retired are willing to take low risk,10% people who are young married
couples are willing to take moderate risk & 30% people who are young unmarried people are
willing to take high risk.

Young unmarried & married age is the perfect age for investment when they don’t have many
responsibilities& pressure, they can’t take risk and they have some extra amount for wealth that
they can invest. It is general observation that young people are willing to take some risk
&especially when they don’t have any social responsibilities. And the age of retirement people
need fixed income because they are not able to earn now the money anymore and secondly, they
are least interested in taking risk as they have some fix amount which they have some fix amount
which they got to use after retirement.

No matter in which profession they are, more interested in open ended funds, In open ended funds
they can enter & exit at any time whenever they want & there is one more advantage that if people
feels that the market is going down they can exit at any time.

5
An interpretation of this study assumes that the respondents have given correct information. The
study reflects the perception of investors which might chance due to diversity in social life, living
pattern. The study also draws an important conclusion that the investors are keen to invest monthly
in various mutual fund schemes and are interested to earn a good return on their investments.
Investors are aware about the factor affecting their investment plans and they do take advice from
different experts. This intensive study will somehow help investors in deciding the correct
investment for their savings.

6
CONTENTS

S.NO Contents Page No.

Chapter-1 General Information
1. Introduction of Topic 8-23
- Mutual funds (Definition)
Concept of Mutual Funds
Function of mutual fund
Mutual fund as trusts, trustees & asset management companies
- Mutual fund schemes in India
How to invest in mutual funds(3 steps)
Taxation benefit investing in mutual funds
Types of risk associated with mutual fund investment
- Advantages & Dis advanatages of mutual fund
- Importance of mutual funds

2. Introduction to the company 24-35

Industry Overview
- Why Bajaj Capital
- VISION, MISSION & Values of the Company
- History
- Products offered by Bajaj Capital
Chapter2- Primary Study
3. Introduction of the study 35
- Objective of the Study
- Scope of the Study
4. Research Methodology 36-38
- Research Design
- Sources of Data
- Data Collected Method
- Sampling Method
- Competitive Analysis
- SWOT Analysis
5. Data Analysis & Interpretation 38-41
6. Results & Findings 42-43
-limitations
7. Future Of Mutual Fund Industry 44
8. Conclusion 45
9. Bibliography 46
10. Annexure 47-48

7
 DEFINITION- (Mutual Funds)
A mutual fund is a pool of money from many investors and invest in stocks, bonds, short term
money market instruments, and other securities and gain profit from it and then the profit is
distributed to the unit holders of different mutual fund holders.

The fund raised are used to invest in securities issued by other organization. They collect small
saving of investors by offering investment in mutual fund units at the same time they use their skill
to invest those funds at the right place at a right time.

CONCEPT OF MUTUAL FUND-

Mutual fund are kind of an investment institution that offer two types of advantage to investing
public, first they offer an opportunity to form a well-diversified investment portfolios for small
investors which otherwise is impossible for an investor with small fund for investment.

Second, they use the expert skill of different expert in forming an efficient investment portfolio,
which otherwise an individual investor could not form because of the lack of expert knowledge
and analytical skill.

FUNCTION OF MUTUAL FUND

❖ Provide institutional mechanism for investment.

Mutual funds provide an institutional mechanism for forming large size well diversified
investment portfolios for small investors by offering mutual funds unit for investment,
which otherwise is impossible for individual investors with small fund.

❖ Offer investment plan for small investors.

8
 Mutual funds offer periodic investment plan for small investors according to which the
investors are allowed to make additional investment in small account periodically. The
investors with small periodic income will be benefited by such plan.

❖ Offer record keeping facilities.

The mutual funds also offer record keeping facilities that provide investors the monthly
statement of transactions of the account. Such information is useful for investors analyze
and evaluate the investment achievement of mutual fund.

❖ Service of Cheques.
Money market mutual funds also offer the services of cheques-writing with restriction to
number of cheques to be written and the amount to be drawn each day.

9
MUTUAL FUNDS AS TRUSTS
A mutual fund in India is constituted in the form of Public Trust Act 1882.The fund sponsor acts
as a settler of the trust contributing to its initial capital & appoints a trustee to hold the assets of
the trust for the benefits of unit holder ,who are the beneficiaries of the trust.The fund then invites
investors to contribute their money in common pool,by scribing to units issued by various schemes
established by the trusts as evidence of their beneficial interest in the fund.

TRUSTEES
A TRUST is created through a document called trust deed that is executed by the fund sponsor in
favor of trustees. The trust-the mutual fund may be managed by a board of trustees. A body of
individual or a trust company or a corporate body. Most of the funds in India are managed by
board of trustees. While the board of trustees are governed by the Indian Trustees Act, where the
trusts are a corporate body, it would also require to comply with the companies act 1956.The
board or a trust company as an independent body acts as a protector of the unit holder interests.
The trustees do not directly manage the portfolio of securities.

For this specialist function, they appoint an asset management company.

THE ASSET MANAGEMENT COMPANIES

The role of asset management company is to act as the investment manager of the trust under the

supervision & the guidance of the trustees. The AMC is required to be approved & registered with

SEBI as an AMC.

Directors of the AMC, both independent & non independent should have adequate professional

expertise.in financial services & should be individuals of high morale standing, a condition also

available to other key personnel of the AMC. The AMC cannot act as trustee of any other mutual

fund. Besides its role as a fund manager ,it may undertake specified objectives such as advisory

10
services & financial consulting provided these activities are run independent of one another & the

AMC resources are properly segregated by the activity.

The AMC must always act in the interest of unit holders & report to the trustees with respect to its

activities.

MUTUAL FUND SCHEMES IN INDIA

HOW TO INVEST IN MUTUAL FUNDS-3 STEPS PROCESS

Step 1 Identify your needs

What are my needs and wants?

How much risk am I willing to take?

Which Instrument or Investing Tool fit for Me?

Step 2 Choose the right mutual fund.

The track record of performance over the last few years in relation to the

appropriate Benchmark and similar funds in the same category.

How well the mutual fund is organized to provide efficient, prompt and

personalized service.

Degree of transparency as reflected in frequency and quality of their

communications.

Step 3 Select the ideal mix of schemes

Investing in just one scheme may not meet all your investment needs.

11
You may consider investing in a combination of schemes to achieve your specific

goal.

TAXATION BENEFIT INVESTING IN MUTUAL FUNDS

The amount invested in tax-saving funds/Equity Linked Saving Schemes (ELSS) is eligible for

deduction under Section 80C up to a limit of Rs.1,50,000/- (in a financial year).

Dividend from Mutual Fund Schemes is Tax-Free in the hands of the Investor/recipient.

Indexation Benefit under Long term Capital Gain in Debt schemes But ELSS has one

Disadvantage that it Has a lock in period of at least 3 years.

TYPES OF RISK ASSOCIATED WITH MUTUAL FUND

INVESTMENT

Risk is an inherent aspect of every form of investment. For Mutual Fund investments, risks

would include variability, or period-by-period fluctuations in total return.

Market risk: At times the prices or yields of all the securities in a particular market rise or fall

due to broad outside influences. This change in price is due to 'market risk'.

Inflation risk: Sometimes referred to as 'loss of purchasing power'. Whenever the rate of inflation

exceeds the earnings on your investment, you run the risk that you'll actually be able to buy less,

not more. Credit risk: In short, how stable is the company or entity to which you lend your

money when you invest? How certain are you that it will be able to pay the interest you are

promised, or repay your principal when the investment matures?

12
Interest rate risk: Interest rate movements in the Indian debt markets at times can be volatile

leading to the possibility of large price movements up or down in debt and money market

securities and thereby to possibly large movements in the NAV.

Other risks associated are:

Investment risks, Liquidity risk

Changes in the government policy

ADVANTAGES OF MUTUAL FUNDS-

If mutual funds are emerging as the favorite, investment vehicle, it is because of the many

advantages they have over other forms & the avenues of investing, particularly for the investor

who has limited resources available in terms of capital & the ability to carry out detailed research

& market monitoring.

The following are the major benefits offered by mutual funds to all investors.

1) PORTFOLIO DIVERSIFICATION-

Each investor in the fund is a part owner of all the funds assets, thus enabling him to hold a

diversified investment portfolio even with a small amount of investment that would otherwise

require big capital.

2) PROFESSIONAL MANAGEMENT-

13
Even if an investor has a big amount of capital available to him, he get benefits from the

professional management skills brought in by the fund in the management of the investor’s

portfolio. The investment management skills, along with the needed research into available

investment options, ensure a much better return than what an investor can manage on his own.

Few investors have the skill & resources of their own to succeed in today’s fast moving global &

complex markets.

3) DIVERSIFICATION OF RISK-

One rule of investing, for both large and small investors, is asset diversification. Diversification

involves the mixing of investments within a portfolio and is used to manage risk. For example, by

choosing to buy stocks in the retail sector and offsetting them with stocks in the industrial sector,

you can reduce the impact of the performance of any one security on your entire portfolio. To

achieve a truly diversified portfolio, you may have to buy stocks with different capitalizations from

different industries and bonds with varying maturities from different issuers. For the individual

investor, this can be quite costly.

By purchasing mutual funds, you are provided with the immediate benefit of instant diversification

and asset allocation without the large amounts of cash needed to create individual portfolios.

4) LIQUIDITY-

Often investors hold shares or bonds that can directly, easily & quickly sell. When they invest in

the units of a fund, they can generally cash their investments any time by selling their units to the

fund if open ended or selling them in the market if the fund is close end. Liquidity of investment

is clearly a big benefit.

14
 5) CONVENIENCE & FLEXIBILITY-

Mutual fund management companies offer many investor services that a direct market investor
cannot get. Investors can easily transfer their holdings from one scheme to the other, get updated
market information & so on.

6) CHOICES OF SCHEME-

Mutual funds offer a family of schemes to suit your varying needs over a lifetime.

7) WELL REGULATED

All mutual funds are registered with SEBI & they function within the provisions of strict
regulations designed to protect the interest of investors. The operations of mutual funds are
regularly monitored by SEBI.

8) TRANSPARENCY-

You get regular information on the value of your investment in addition to disclosure on the
specific investments made by your scheme, the proportion invested in each class of assets & the
fund manager’s investment strategy & outlook.

DISADVANTAGES OF MUTUAL FUNDS

1)NO CONTROL OVER COSTS-

An investor in a mutual fund has no control of the overall costs of investing, The investor pays
investment management fees as long as he remains with the fund. Fees are payable even if the
value of his investment is declining. A mutual fund investor also pays fund distribution costs,

15
which he would not incur in direct investing. However, this shortcoming only means that there is
a cost to obtain the mutual fund services.

2)NO TAILOR- MADE PORTFOLIO-

Investor who invests on their own can build their own portfolios of shares and bonds & other
securities. Investing through fund means he delegates this decision to the fund managers. The
very high net worth individuals or large corporate investors may find this to be a constraint in
achieving their objectives. However most mutual fund managers help investors overcome this
constraint by offering families of funds a large number different schemes –within their own
management company. An investor can choose from different investment plans & construct a
portfolio to his choice.

3)DILUTION-

Mutual funds generally have such small holdings of so many different stocks that insanely great

performance by a funds top holding still doesn’t make much a difference in a mutual fund’s total

performance.

4)MANAGING A PORTFOLIO OF FUNDS-

Availability of a large number of funds can actually mean too much choice for the investor .He

may again need advice on how to select a fund to achieve its objectives, quite similar to the

situation when he has individual shares or bonds to select.

16
IMPORTANCE OF MUTUAL FUND

Mutual fund provides a host of benefits which makes them important. The important of mutual

fund are as follows:

Convenience:

For investors, one of the most prominent benefits that mutual fund provide is convenience. By

investing in a single fund, they can gain access to a broad rang of the financial market. A typical

diversified equity fund can spread out the money across tens of stocks with some portion

invested in fixed income securities as well.

Diversification

Mutual funds are a cost-effective way to diversify your portfolio across different asset categories

and industry sectors. Instead of buying and monitoring potentially dozens of stocks, you could buy

a few mutual funds to achieve broad diversification at a fraction of the cost. For example, equity

funds offer an indirect way to invest in dozens of companies in different industry sectors, while

balanced funds offer exposure to both stocks and bonds. Further diversification is possible within

each asset category. For example, you could buy mutual funds that specialize in certain industries

within equities, such as technology and energy. Similarly, international funds and emerging market

funds are convenient ways to diversify geographically.

Expertise

Professional money management expertise at a reasonable cost is another important attribute of

mutual funds. Fund managers typically have postgraduate finance degrees, and several years of

stock analysis and investment management experience. Mutual fund companies use a combination
17
of in-house research staff and the services of external research firms to determine the composition

of fund portfolios. Fund managers may use information technology and sophisticated trading

strategies to rebalance portfolios and hedge against market volatility.

Affordability

Mutual funds have leveled the playing field by bringing the financial markets closer to small

investors. For about the price of an average stock, you can participate in the capital gains and

dividend distributions of potentially dozens of companies. You do not have to spend a sizable

amount of your savings to invest in each one of these companies separately. Mutual fund

companies are able to spread research, commissions, and related expenses over a larger asset base,

which reduces the cost for individual fund investors. You can reduce the costs even further by

holding index mutual funds, which track major market and industry indexes. These funds have low

management fees and expenses because they do not have the research and trading costs of actively

managed funds.

18
 TYPES OF MUTUAL FUND SCHEMES IN INDIA
Types of Mutual Funds based on structure

Open-Ended Funds:
An open-ended fund is that type of mutual fund that does not have restriction on the amount of

shares the fund can issue. It is that type of mutual fund which issuing unlimited shares of

investments in stocks and bonds. There are no limits on how much can be invested in the fund.

They also tend to be actively managed which means that there is a fund manager who picks the

places where investments will be made. These funds also charge a fee which can be higher than

passively managed funds because of the active management. They are an ideal investment for

those who want investment along with liquidity because they are not bound to any specific

maturity periods. Which means that investors can withdraw their funds at any time they want

thus giving them the liquidity they need.

19
Close-Ended Funds:
These are funds in which units can be purchased only during the initial offer period. Units can

be redeemed at a specified maturity date. To provide for liquidity, these schemes are often

listed for trade on a stock exchange. Unlike open ended mutual funds, once the units or stocks

are bought, they cannot be sold back to the mutual fund, instead they need to be sold through

the stock market at the prevailing price of the shares.

Interval Funds:

These are funds that have the features of open-ended and close-ended funds in that they are

opened for repurchase of shares at different intervals during the fund tenure. The fund

management company offers to repurchase units from existing unitholders during these

intervals. If unitholders wish to they can offload shares in favour of the fund.

Types of Mutual Funds based on asset class

Equity Funds:

These are funds that invest in equity stocks/shares of companies. These are considered high-

risk funds but also tend to provide high returns. Equity funds can include specialty funds like

infrastructure, fast moving consumer goods and banking to name a few.

Debt Funds:

These are funds that invest in debt instruments e.g., company debentures, government bonds

and other fixed income assets. They are considered safe investments and provide fixed returns.

These funds do not deduct tax at source so if the earning from the investment is more than Rs.

10,000 then the investor is liable to pay the tax on it himself.

20
 Money Market Funds:

These are funds that invest in liquid instruments e.g. T-Bills, CPs etc. They are considered safe

investments for those looking to park surplus funds for immediate but moderate returns.

Money markets are also referred to as cash markets and come with risks in terms of interest

risk, reinvestment risk and credit risks.

Balanced or Hybrid Funds:

These are funds that invest in a mix of asset classes. In some cases, the proportion of equity is

higher than debt while in others it is the other way round. Risk and returns are balanced out

this way. An example of a hybrid fund would be Franklin India Balanced Fund-DP (G)

because in this fund, 65% to 80% of the investment is made in equities and the remaining 20%

to 35% is invested in the debt market. This is so because the debt markets offer a lower risk

than the equity market.

Types of Mutual Funds based on investment objectives

Income funds:

Under these schemes, money is invested primarily in fixed-income instruments e.g., bonds,

debentures etc. with the purpose of providing capital protection and regular income to investors.

Liquid funds:

Under these schemes, money is invested primarily in short-term or very short-term instruments

e.g., T-Bills, CPs etc. with the purpose of providing liquidity. They are considered to be low on

risk with moderate returns and are ideal for investors with short-term investment timelines.

21
 Tax-Saving Funds (ELSS):

These are funds that invest primarily in equity shares. Investments made in these funds qualify

for deductions under the Income Tax Act. They are considered high on risk but also offer high

returns if the fund performs well.

Capital Protection Funds:

These are funds where funds are split between investment in fixed income instruments and

equity markets. This is done to ensure protection of the principal that has been invested.

Fixed Maturity Funds:

Fixed maturity funds are those in which the assets are invested in debt and money market

instruments where the maturity date is either the same as that of the fund or earlier than it.

Pension Funds:

Pension funds are mutual funds that are invested in with a long-term goal in mind. They are

primarily meant to provide regular returns around the time that the investor is ready to retire. The

investments in such a fund may be split between equities and debt markets where equities act as

the risky part of the investment providing higher return and debt markets balance the risk and

provide lower but steady returns. The returns from these funds can be taken in lump sums, as a

pension or a combination of the two.

Index Funds:

These are funds that invest in instruments that represent a particular index on an exchange so as to

mirror the movement and returns of the index e.g., buying shares representative of the BSE Sensex.

SIP:( Systematic Investment Plan)

22
Cost Averaging

By investing fixed sums at regular intervals, you pick up more units when the prices are low and

less units when the prices are high. This brings down the average cost of your units. Therefore,

there is no need to ‘Time the Market’.

Compounding Effect: Investing regularly for a long period of time could help you accumulate

a sizeable corpus through compounding effect.

Financial Goals
Lower
SIP is a perfect tool for people who have a specific, Consistency

future financial requirement. By investing a specific Delay

amount every month, you can plan for and may meet
Fixed Amount
your financial goals.

Convenience: A single ECS instruction is all that FIGURELimited Options of SIP

2.18Limitations
of Dates
you need to start an SIP.

Disadvantages: There are times when you feel that markets are undervalued, and you want

to invest more but then in SIP only a predetermined fixed sum gets invested. For a SIP you need

to decide a date in advance when you like to do your SIP and give an ECS mandate for the same.

Most of the MFs have limited option (mainly 1st, 5th, 7th, 10th, 15th, etc.). So you tend to invest

in multiple mutual funds on the same date. SIP returns are lower in consistently rising markets

23
INDUSTRY OVERVIEW ( Bajaj Capital)
Bajaj Capital Limited, a financial services company, provides investment advisory and financial
planning services to individual investors, corporate houses, institutional investors, non-resident
Indians, and high networth clients in India. It offers investment, insurance, tax saving, retirement,
financial, cash flow, and children’s future planning services. The company also distributes various
financial and investment products, such as mutual funds, life and general insurance, bonds, post
office schemes, fixed deposits, initial public offerings, and real estate property investments. In
addition, it provides investment banking services for private and public sector enterprises.

WHY BAJAJ CAPITAL

1) SEBI licensed Category I Merchant Banker, ARN Holder, DP of NSDL.

2) Over 55 years of experience in helping people protect and grow their wealth.

3) We help in need analysis, scheme selection and efficient execution through our proprietary
360-degree financial assessment tool.

4) We offer an incredibly diverse range of financial products and personalized services.

5) Over 120 offices in 70 cities across India, to maintain a consistency of relationship and
experience.

6) Strong team of qualified and experienced professionals including CA's, MBA's, MBE's,
CFP's, CS's, Legal Experts and others.

7) Our Group Companies include, Bajaj Capital Insurance Broking Limited, is an IRDA-
licensed Composite Insurance Broker; Just Trade Securities Limited, member of NSE and
BSE; Bajaj Capital Investment Centre Limited, which facilitates realty solutions.

8) Serving over 10 lakh clients.

24
Our Promise

We promise to provide our clients - research based, unbiased, independent and need based
services/advice with honest and ethical dealings.

Our Mission

Provide need-based solutions at the right value, gaining lifetime client relationships through a
happy team & service excellence.

Our Vision

India's most admired & recommended wealth creation & protection brand.

HISTORY OF MUTUAL FUNDS-

The mutual fund industry in India began in 1963 with the formation of the Unit Trust of India
(UTI) as an initiative of the Government of India and the Reserve Bank of India. Much later, in
1987, SBI Mutual Fund became the first non-UTI mutual fund in India.

Subsequently, the year 1993 heralded a new era in the mutual fund industry. This was marked by
the entry of private companies in the sector. After the Securities and Exchange Board of India
(SEBI) Act was passed in 1992, the SEBI Mutual Fund Regulations came into being in 1996. Since
then, the Mutual fund companies have continued to grow exponentially with foreign institutions
setting shop in India, through joint ventures and acquisitions.
As the industry expanded, a non-profit organization, the Association of Mutual Funds in India
(AMFI), was established in 1995. Its objective is to promote healthy and ethical marketing
practices in the Indian mutual fund Industry. SEBI has made AMFI certification mandatory for all
those engaged in selling or marketing mutual fund products.

25
PRODUCTS OFFERED BY BAJAJ CAPITAL

FIXED DEPOSITS

Deposit(s) in Companies that earn a “fixed rate of return” over a period of time are called Company

Fixed Deposits. Financial Institutions and Non-Banking Finance Companies (NBFCs) accept such

deposits. Acceptance of deposits by companies are governed by the applicable provisions

contained in the Companies Act, 1956 (soon will be governed by the Companies Act, 2013) and

the Companies Acceptance of Deposit Rules (currently, Companies (Acceptance of Deposit)

Rules, 1975. In due course, the new Rules under the Companies Act, 2013 is expected to be

notified). These deposits are currently unsecured in nature. However, there are certain proposed

provisions included in the Companies Act, 2013, wherein it is likely that the said deposit could be

secured

Benefits of investing in Company Fixed Deposits

High interest.

Short-term deposits.

Minimum lock-in period is 6 months.

No Income Tax is deducted at source if the interest income is up to Rs 5,000 in one financial year

BONDS:

Bond refers to a security issued by a Company, Financial Institution or Government, which offers
regular or fixed payment of interest in return for borrowed money for a certain period of time

26
Bond refers to a security issued by a Company, Financial Institution or Government, which offers
regular or fixed payment of interest in return for borrowed money for a certain period.

INSURANCE:

A contract (insurance policy) in which the insurer (insurance company) agrees for a fee (insurance
premiums) to pay the insured party all or a portion of any loss suffered by accident or death.

GENERAL INSURANCE

27
General Insurance comprises of insurance of property against fire, burglary etc., personal
insurance such as Accident and Health Insurance, and liability insurance which covers legal
liabilities. There are also other covers such as Errors and Omissions insurance for professionals,
credit insurance etc. Non-life insurance companies have products that cover property against Fire
and allied perils, flood storm and inundation, earthquake and so on. There are products that
cover property against burglary, theft etc. The non-life companies also offer policies covering
machinery against breakdown, there are policies that cover the hull of ships and so on.

HEALTH INSURANCE
Health is wealth and a Mediclaim Policy is the best way to
insure it. Mediclaim is the best solution that you can use to
cover up all medical expenses.
Health Insurance (popularly known as Medi-claim Policy)
offers protection from unexpected medical emergencies,
providing a financial support. Health insurance, therefore, can be a source of support as it takes
care of the financial burden your family may have to go through. It will help you tackle such
situations with ease by providing you with timely and adequate medical care.
This policy covers individual & one’s family from medical expenses during

Sudden illness
Surgeries (acquired in respect of any disease, which has arisen during the policy period.)
Accidents including room charges, doctor's fees, medicines, tests etc. that may arise in
future.

28
 MOTOR INSURANCE
Motor Insurance is a wide comprehensive cover designed to
provide protection to you & your car. Protection from loss of
car or damage to the car – giving a secured driving.

It covers :
Own damage
Legal liability of insured towards third party personal injury and property damage arising out
of an accident involving the insured vehicle
Depreciation Reimbursement
Loss of Personal Belongings
No Claim Bonus Protection
Repair of Glass, Fibre, Plastic and Rubber Parts
Key Replacement

HOME INSURANCE
Home Insurance policy provides a cover to the structure and contents of your home from all
unforeseen natural & man-made catastrophes. It provides protection for property and interests of
the insured and his family members. It is imperative that you secure your home which gives one
peace of mind protecting the most valued possession.

Coverages

29
 Section – I: Fire & Allied Perils. Loss to the residential building, household goods & personal
effects - as per Fire Policy and Earthquake Risk.
A) Against House Building.
B) Against household contents.
Section – II: Burglary & Housebreaking including larceny or theft (Contents only)
Section-III: All Risk against valuable items. Loss or damage to Jewellery, Valuables etc. due to
accident or misfortune
Section-IV: Plate Glass Cover (fixed). Accidental breakage of fixed plate glass
Section-V: Breakdown of domestic appliance. Damage to electrical appliances (refrigerator,
mixer etc.) due to electrical or mechanical breakdown.
Section –VI: Television Sets (All Risk) cover. Sum insured should be its new replacement
value
Section-VII: Pedal Cycle (All Risks) cover. Loss by Fire & allied perils Housebreaking / Theft,
Accidental external means
Section –VIII: Baggage Insurance cover. Loss to accompanied baggage by accident or
misfortune
Section-IX: Personal Accident Insurance cover. Death or bodily injury by accidental, external
violent, visible means including Medical Expenses resulting from accident & weekly
compensation during hospitalization in Hospital only.
Section-X: Public Liability &; Workman Compensation Risks. Legal liability of the Insured to
the public for bodily injury or accidental death and workman compensation as per Workman
Compensation Act

30
TRAVEL INSURANCE
Travel Insurance / Overseas Medi-claim policy is a basic
requirement when one travels abroad, either its for business,
sight-seeing, shopping or pleasure. It is a single policy which
covers all unforeseen risks – medical & non-medical when
one is in a strange place.

Options available
Single Trip
Multi Trip
Student Medical
Senior Citizen
Pay per day basis

Coverage of Medical Expenses

It takes care of your medical expenses due to accident and sickness while traveling so that you
can concentrate on better things like enjoying the holiday.

Checked Baggage Loss

Compensation for the loss of checked in baggage.

Baggage delay
Compensation for reasonable expenses incurred for purchase of emergency personal effects due
to delay in arrival of checked in baggage, whilst overseas.

Loss of Passport
Compensation for expenses incurred in obtaining a duplicate or new passport.

31
Personal Liability
Compensation for damages to be paid to a third party, resulting from death, bodily injury or
damage to property; caused involuntarily by the insured.

Hijacking
In an unfortunate event of your common carrier in which you are traveling; being hijacked, it
will pay a distress allowance to you.

In-hospital Indemnity
Travel Guard pays a Daily benefit for each day you are an inpatient in a hospital due to injury
or sickness.

Trip Delay
Reimbursement of additional expenses occurred due to trip delay.

Automatic extension of the policy

It allows you to extend your policy upto a period of 7 days from the policy expiry date.

PERSONAL ACCIDENT

Accidents do not happen when you are driving a car, or away

on a vacation. It may happen anytime & anywhere.
Considering that modern day life is so dangerous, a personal
accident policy is a solution to such vagaries of life.
Its a Benefit Policy.

Coverages are -
Accidental Death Benefit
Accidental Permanent Total / Partial Disability Benefit

32
 Accidental Partial / Temporary Disability Benefit
Broken Bones
Burns

MARINE INSURANCE
A contract of marine insurance is an agreement whereby the insurer covers against losses incidental
to marine adventure.

There is a marine adventure when any insurable property is exposed to maritime perils i.e. perils
consequent to navigation of the sea. The term 'perils of the sea' refers only to accidents or
causalities of the sea, and does not include the ordinary action of the winds and waves. Besides,
maritime perils include, fire, war perils, pirates, seizures and jettison, etc.

There are four types of Marine Insurance-

Hull Insurance - Covers the insurance of the vessel and its equipment i.e. furniture and
fittings, machinery, tools, fuel,etc. It is effected generally by the owner of the ship.
Cargo Insurance - Includes the cargo or goods contained in the ship and the personal
belongings of the crew and passengers.
Freight Insurance - Provides protection against the loss of freight. In many cases, the
owner of goods is bound to pay freight, under the terms of the contract, only when the goods
are safely delivered at the port of destination. If the ship is lost on the way or the cargo is
damaged or stolen, the shipping company loses the freight. Freight insurance is taken to guard
against such risk.
Liability Insurance - Is one in which the insurer undertakes to indemnify against the loss
which the insured may suffer on account of liability to a third party caused by collision of the
ship and other similar hazards.
In a contract of marine insurance, the insured must have insurable interest in the subject matter
insured at the time of the loss. Insurable interest is not required to be present at the time of taking
the policy.

33
Under marine insurance, the following persons are deemed to have insurable
interest :
The owner of the ship has an insurable interest in the ship.
The owner of the cargo has insurable interest in the cargo.
A creditor who has advanced money on the security of the ship or cargo has insurable
interest to the extent of his loan.
The master and crew of the ship have insurable interest in respect of their wages.
If the subject matter of insurance is mortgaged, the mortgagor has insurable interest in the
full value thereof, and the mortgagee has insurable interest in respect of any sum due to him.
A trustee holding any property in trust has insurable interest in such property.
In case of advance freight the person advancing the freight has an insurable interest in so far
as such freight is repayable in case of loss.

34
REAL ESTATE:

Bajaj Capital Realty, a part of the Bajaj Capital Group is a full services provider of
Real Estate services offering Real estate solutions across its Residential,
Commercial and Retail space. They aim to give unparalleled service, unbiased
advice in helping you make Real Estate investment decisions.
Our lineage of Bajaj Capital which is India's one of the oldest and largest investment
services firm over last five decades and having served a million plus Indian Investors
across the world, put us in a unique position to provide the same to the Real estate
Investors. Our focus on maximizing returns based on your unique requirements,
budgets, location etc. make us stand out from the rest.

They do a rigorous evaluation of builders and projects and promote projects by

professional and reputed builders who are focused on timely deliveries and those
who honor these commitments.

Property has long been considered a good investment. However, many property
buyers feel constrained due to lack of expertise in evaluating properties, both from
the investment point of view as well as for own residential or commercial use with
over four decades of experience in the investment advisory business and a reputation
of being an unbiased and independent advisor, Bajaj Capital Reality was born in
April 2006.

Bajaj Capital Realty - Four Decades of Excellence For over four decades, Bajaj
Capital has been helping people realize their aspirations by investing wisely. Today,
Bajaj Capital is one of India's foremost Financial Planning and Investment Advisory
companies, with a strong presence all over the country. They take pride in serving
our customers both individual and institutional and are known for our strong
professionalism and work ethics.
35
3. OBJECTIVES OF THE STUDY

• To understand preference of investor among different investment options.

• To analyse the factors affecting behaviour of Mutual Fund investor.

SCOPE OF THE STUDY

The scope of the study is to track out the investors’ preferences, priorities and their
awareness towards different mutual fund schemes. Keeping in view the various
constraints the scope of the study is limited only to the investors residing in North
India. Data for the study is collected from a sample of 100 investors by using a
questionnaire.

The main purpose of the study is to analyse the perception of people for mutual funds
and to analyse the future of Mutual Funds

RESEARCH METHODOLOGY
This report is based on primary data, some from Google and Some from money control official
website.

NATURE OF RESEARCH:

The present research is based on the data of the investment objectives to see what the future of
Mutual Funds Industry is.

RESEARCH DESIGN:

A Research design is a set of advance decisions that makes up the master plan specifying the
methods and procedures for collecting and analyzing the needed information. The survey research
design was DESCRIPTIVE IN NATURE. Survey research attempts to collect data from members

36
of a population and describes existing phenomena by asking individuals about their opinion,
attitudes, behavior, or values on Mutual funds.

This design was suitable for this kind of study because the researcher intended to collect data meant
to ascertain facts investment decisions. This kind of research methodology makes use of surveys
to solicit investors informed opinion. It is often used to study the general condition of people and
organizations as it investigates the behavior and opinion of people usually through questioning
them.

DATA COLLECTION METHOD: The primary data (Survey Method) was collected from a
group of 100 respondents. The respondents were selected through the convenience sampling
technique since it is a less time-consuming and convenient procedure. They will be considered
adequate to represent the characteristics of the entire population

SOURCES OF DATA:

The research is descriptive in nature, as it tends to portray what investors think while investing in
any particular product and for this survey method is adopted. It is so designed to collect all required
information from investors. Primary data was collected from a group of respondents through
structured questionnaires.

Sampling Method:
The sample was collected through personal visits, formal& informal talks & through filling up
the questionnaire prepared.

Sample Size: 100 respondents

Duration of study-
The study was carried out for a period of 2 months from 30th June 2022 to 31st August,2022.

37
COMPETITIVE ANALYSIS

COMPANY-Bajaj Capital

CUSTOMER-Corporates, Individuals, Institutional Investors.

SWOT ANALYSIS (Strength , Weakness, Opportunity , Threats)

SWOT Analysis

• Diverse range of financial products

• State of art I.T solution for customers like just trade.
• Known for transparent functioning
• Has over 200 branches across states
Strengths

• Less penetration in rural areas

• Lack of awareness due to Low publicity
• People with conservative mindsets prefer gold
investment
Weaknesses

• Tapping the growing rural market opportunities

• Earning Urban Youth looking for investment options
Opportunities

• Stringent Economic measures by Government and RBI

• Entry of foreign finance firms in Indian Market.
Threats

38
DATA ANALYSIS

Sales

15%
18-24 AGE
46% 24-30 AGE
39% 30+

INTERPRETATION:

Out of 100 respondents

46%:18-24

39%:24-30

15%-30& above

39
 Income level

20% Less than 2 lakh

45% 2-6 lakh

35% above 6 lakh

INTERPRETATION:

Less than 2 L – 20%

2-6 L -- 35%

Above 6 L – 45%

Aware about mutual funds

yes
no

INTERPRETATION-

From the total lot of 100 people 85% people are aware of the facts of mutual funds.

15% people were there who just heard the name or rather are just aware of the fact of existence of
the word called mutual fund but doesn’t know anything else about mutual funds.

40
 Risk factor

low
moderate
high

INTERPRETATION:

Out of 100 respondents 35% people who are retired are willing to take low risk, 25% people who
are young married couples are willing to take moderate risk & 40% people who are young
unmarried people are willing to take high risk.

Types of mutual funds

Open ended schemes

Close ended schemes

INTERPRETATION:

Above pie chart shows that no matter in which profession they are more interested in open ended
funds, In open ended funds they can enter & exit at any time whenever they want & there is no
more advantage that if people feels that the market is going down they can exit at any time.

41
 Sales

Young unmarried stage

young married with children stage

married with older children age

pre retirement age

INTERPRETATION

From the above pie chart young married age is the perfect age for investment when they don’t have
many responsibilities& they have some extra amount for investment. It is general observation that
young people are willing to take some risk & specially when they don’t have any social
responsibilities. And the age of retirement people need fixed income because they are least
interested in taking risk as they have some fix amount which they have some fix amount which
they got to use after retirement.

42
RESULTS & FINDINGS
1)Income level of an investor is an important factor, which affect portfolio of an investor.

2)15% people were there who just heard the name or rather are just aware of the fact of existence

of the word called mutual fund but doesn’t know anything else about mutual funds.

3)Many of the investors are investing in SIP, an amount of Rs1000-5000monthly

4) Return on Investment and risk involved is the most important factor for the investors.

6) High income level groups are mainly investing in mutual funds rather than any other investment

avenues

7) Middle income level groups have the moderate nature of investing.

8) Low-income level groups are not preferred to take risks and they choose bank deposits as a

better investment plan.

9) 35% people who are retired are willing to take low risk ,25% people who are young married

couples are willing to take moderate risk & 40% people who are young unmarried people are

willing to take high risk.

43
 LIMITATIONS OF THE STUDY
- An interpretation of this study assumes that the respondents have given correct information.

- The economy and the industry are so wide and comprehensive that it is difficult to

encompass all the likely factors influencing the investor’s investment pattern in a given

period of time.

- Besides the study has the limitation of time, place and resources.

- The study reflects the perception of investors which might chance due to diversity in social

life, living pattern.

44
FUTURE OF MUTUAL FUND INDUSTRY
The Indian mutual fund industry is said to have entered a high-growth phase and is projected to
double in size in the next 5 years. This growth, according to KFin Technology's draft IPO
prospectus, will be driven by five major factors ranging from India's economic growth to tax
benefits associated with mutual fund investments. The key factors and how they will impact
mutual funds positively:-

Economic growth

The report said that mutual fund industry will benefit from the projected 11% growth in nominal
GDP between FY 2021 and FY 2025. "Economic growth, coupled with rise in middle-income
population and increase in financial savings is expected to boost mutual fund industry in India,"
it said.

Financial inclusion and investor education

Regulatory and government initiatives aimed at raising financial awareness among the masses
will lead to higher penetration of mutual funds, the report said. "CRISIL Research believes that
investor education, coupled with better risk management and transparency within the mutual
fund industry will boost investor confidence and lead to increased investments and growth in the
industry."

Retirement planning and tax benefits

Retirement planning is an untapped market in India and if channelled through mutual funds, has
the potential to significantly improve penetration among households, said the report, adding that
substantial proportion of young population offers huge potential for mutual funds in retirement
planning. Similarly, the tax benefits of ELSS is likely to boost the growth of mutual funds as
more and more people join the formal sector.

Risks and challenges

Mutual funds may have a lot of growth drivers but they face equal number of challenges that
range from taxation to competition from other financial products.

45
CONCLUSION
The study shows that people are now becoming more and more aware about the
mutual fund industry and they are now investing more of their money in various
mutual funds and in equity instead of putting it all in the savings account where they
do not get returns to beat inflation and that reduces the value of their savings and the
digitalization of KYC and banking and ease of opening your DEMAT account with
just a few steps compared to earlier times. After the successfully completion of my
summer internship I understood that market research is an important aspect for a
company throughout the life cycle of a particular product. It helps in knowing the
changing taste, preference, lifestyle etc. of the consumer.

A mutual fund is the ideal investment vehicle for today’s complex and modern
financial scenario. Markets for equity shares, bonds and other fixes income
instruments, real estate, derivatives and other assets have become mature and
information driven. Today each and every person is fully aware of every kind of
investment proposal.

There is a tremendous growth opportunity for the Mutual Funds

Companies provided they focus on

• Better marketing to increase awareness level

• Building a relationship of trust and commitment with the investors

• Better rate of returns to the investors than offered by other investment

options

• Providing better service to the investors

46
BIBLIOGRAPHY

1. http://www.Google.com

2. http://www.moneycontrol.com

3.http://www.valueresearch.com

4.http://www.investopedia.com

47
ANNEXURE

Questionnaire on
“Survey On Mutual Funds”

Name:

Occupation:

Email ID:

QUES 1) Your Age:

a)18-24 b)24-30 c) More than 30

Ques2. What is your annual income?

a) less than 2 lakh b)2-6lakh c) More than 6 lakhs

Ques3.Do you invest in mutual funds?

a) Yes b) No

Ques 4. Have you heard about Bajaj Capital?

a) Yes b) No

48
Ques 5. Life Stage?

a) Young Married Stage b) Young married with children stage

c)Married with older children age d) Preretirement age

Ques 6. Where do you invest your money right now?

a) Fixed Deposit b) Bank Account

c) Gold d) Mutual Funds

Ques 7. Why do you start late in Mutual Fund?

a) Fear of Loss b) Lack of knowledge

c) Lack of market experience d) Late Awareness

Ques 8. What way you prefer to invest?

a) SIP b) LUMPSUM

49